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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0001104659-01-503151.txt : 20020410
<SEC-HEADER>0001104659-01-503151.hdr.sgml : 20020410
ACCESSION NUMBER:		0001104659-01-503151
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20010930
FILED AS OF DATE:		20011114

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			NORTECH SYSTEMS INC
		CENTRAL INDEX KEY:			0000722313
		STANDARD INDUSTRIAL CLASSIFICATION:	ELECTRONIC COMPONENTS, NEC [3679]
		IRS NUMBER:				411681094
		STATE OF INCORPORATION:			MN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-13257
		FILM NUMBER:		1786388

	BUSINESS ADDRESS:	
		STREET 1:		641 EAST LAKE ST
		STREET 2:		SUITE 234
		CITY:			WAYZATA
		STATE:			MN
		ZIP:			55391
		BUSINESS PHONE:		6124734102

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DIGIGRAPHIC SYSTEMS CORP
		DATE OF NAME CHANGE:	19881113

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DSC NORTECH INC
		DATE OF NAME CHANGE:	19901217
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>j1987_10q.htm
<DESCRIPTION>10-Q
<TEXT>
<html>



<head>



<title>Prepared by MERRILL CORPORATION</title>



</head>



<body link="blue" vlink="purple">



<div class="Section1">



<div style="border:none;border-top:double windowtext 9.0pt;padding:0in 0in 0in 0in">



<p align="center" style="border:none;font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;padding:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



</div>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="5" face="Times New Roman"><font style="font-size:18.0pt;font-weight:bold">SECURITIES AND EXCHANGE COMMISSION</font></font></b></p>



<h1 align="center" style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">WASHINGTON,

D.C. 20549</font></font></b></h1>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;

font-weight:bold">&nbsp;</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="5" face="Times New Roman"><font style="font-size:18.0pt;font-weight:bold">FORM 10-Q</font></font></b></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font size="3" face="Wingdings"><font style="font-size:12.0pt;

font-family:Wingdings;">&#253;</font></font></b><font face="Times New Roman"><font style="font-family:'Times New Roman';">&#160;

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">For the quarterly period ended

September 30, 2001.</font></font></b></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font size="3" face="Wingdings"><font style="font-size:12.0pt;

font-family:Wingdings;">o</font></font></b><font face="Times New Roman"><font style="font-family:'Times New Roman';">&#160;

Transition Report Pursuant to Section 13 or 15(d) of the Securities

Exchange Act of 1934</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">For the Transition period from <u>___________</u>

to <u>___________.</u></font></font></b></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">&nbsp;</font></font></b></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">Commission File Number 0-13257.</font></font></b></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="5" face="Times New Roman"><font style="font-size:18.0pt;font-weight:bold">NORTECH&#160; SYSTEMS&#160; INCORPORATED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(Exact name of registrant

as specified in its chapter)</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<table width="99%" style="width:99.88%;

 border-collapse:collapse;">

 <tr>

  <td width="50%" valign="top" style="width:50.06%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">MINNESOTA</font></font></b></p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="49%" valign="top" style="width:49.02%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">41-1681094</font></font></b></p>

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="width:50.06%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(State of other

  jurisdiction of<br>&#160;Incorporation or organization)</font></font></p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="49%" valign="top" style="width:49.02%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(I.R.S. Employer

  Identification No.)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="50%" valign="top" style="width:50.06%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="49%" valign="top" style="width:49.02%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">1120

  Wayzata Blvd East Suite 201, Wayzata, MN 55391</font></font></b></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(Address of principal

  executive offices) (Zip Code)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">(952)

  473-4102</font></font></b></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(Registrant's telephone

  number, including area code)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Securities registered

  pursuant to Section 12(b) of the Act:</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">None</font></font></b></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Securities registered

  pursuant to Section 12(b) of the Act:</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" colspan="3" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Common Stock,&#160; $.01 per share per value.</font></font></p>

  </td>

 </tr>

</table>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">Indicate by check mark whether the registrant (1) has filed all reports

required to be filed by Section 13 or 15(d) of the securities Exchange Act of

1934 during the preceding 12 months (or for such shorter period that the

registrant was required to file such reports), and (2) has been subject to such

filing requirements for the past 90 days.&#160;

YES </font></font><font face="Wingdings"><font style="font-family:Wingdings;">&#253;</font></font>&#160;&#160;&#160; NO <font face="Wingdings"><font style="font-family:Wingdings;">o</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<div style="border:none;border-bottom:double windowtext 9.0pt;padding:0in 0in 0in 0in">



<p style="border:none;font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;padding:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



</div>



<font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-family:

'Times New Roman';"><br clear="all" style="page-break-before:always">

</font></font>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">APPLICABLE ONLY TO CORPORATE REGISTRANTS;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">Indicate the number of shares outstanding of each of the issuer's

classes of common stock, as of latest practicable data.</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">As of October 31, 2001, there were 2,361,192 shares of the Company's

$.01 per share par value common stock outstanding.</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">(The remainder of this page was intentionally left blank.)</font></font></p>



<font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-family:

'Times New Roman';"><br clear="all" style="page-break-before:always">

</font></font>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;">&nbsp;</p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;

font-weight:bold">NORTECH SYSTEMS INCORPORATED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;

font-weight:bold">FORM 10-Q</font></font></b></p>



<h5 style="font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt">QUARTER ENDED SEPTEMBER 30, 2001</font></font></b></h5>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;

font-weight:bold">INDEX</font></font></b></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<table width="100%" style="width:100.0%;

 border-collapse:collapse;">

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">PART I&#160;

  -&#160; FINANCIAL INFORMATION</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</h1>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:70.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt"><a href="#ConsolidatedBalanceSheets" title="Click to goto CONSOLIDATED BALANCE SHEETS">Item 1 - Financial

  Statement</a><a href="#NotesToCondensedConsolidatedFinancia" title="Click to goto NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS">s</a>

  <a href="#NotesToCondensedConsolidatedFinancia" title="Click to goto NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS">Notes

  to Condensed Consolidated Financial Statements</a></font></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:70.0pt;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:70.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt"><a href="#Item2_ManagementsDiscussionAndAnal" title="Click to goto ITEM 2. MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.">Item

  2 - Management's Discussion and Analysis of Financial Condition And Results

  of Operations</a></font></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt"><a href="#PartIiOtherInformation" title="Click to goto PART II  - OTHER INFORMATION">PART II&#160; -&#160;

  OTHER INFORMATION</a></font></font></p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-indent:35.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt"><a href="#Item6_ExhibitsAndReportsOnForm8" title="Click to goto Item 6.  Exhibits and Reports on Form 8-K.">Item 6 -

  Exhibits and Reports on Form 8-K</a></font></font></h1>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="100%" valign="top" style="width:100.0%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt"><a href="#Signatures" title="Click to goto SIGNATURES">SIGNATURES</a></font></font></p>

  </td>

 </tr>

</table>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-family:

'Times New Roman';"><br clear="all" style="page-break-before:always">

</font></font>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">NORTECH

SYSTEMS INCORPORATED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><a name="ConsolidatedBalanceSheets"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">CONSOLIDATED BALANCE SHEETS</font></font></b></a></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

30, 2001 AND DECEMBER 30, 2000</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;

font-weight:bold">&nbsp;</font></font></b></p>



<table width="91%" style="width:91.1%;

 border-collapse:collapse;">

 <tr>

  <td width="59%" valign="bottom" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER 30</font></font></b></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">DECEMBER

  31</font></font></b></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="bottom" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">ASSETS</font></font></b></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">2001</font></font></b></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">2000</font></font></b></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="bottom" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">&#160;(UNAUDITED)</font></font></b></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">(AUDITED)</font></font></b></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">&nbsp;</font></font></b></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">&nbsp;</font></font></b></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Current Assets</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Cash and cash

  equivalents</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">150,135</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">527,998</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accounts receivable,

  net of allowance</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">8,370,403</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">8,580,791</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Inventories:</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:40.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Finished goods</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,824,592</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,298,626</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:20.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Work in process</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,993,004</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,848,025</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:20.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Raw materials</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">9,803,726</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">8,448,484</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Prepaid expenses and

  other</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">354,415</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">47,462</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Deferred tax asset</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,359,000</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,422,000</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:20.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Total Current

  Assets</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.02%;border:

  none;border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.06%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">23,855,275</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.02%;border:

  none;border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.06%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">22,173,386</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Property and

  Equipment</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="bottom" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Land and

  building/leaseholds</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">4,544,933</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">4,386,421</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Manufacturing equipment</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">4,974,208</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">4,594,607</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Office and other

  equipment</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,414,042</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,325,189</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:20.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Total</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">11,933,183</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">11,306,217</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accumulated

  depreciation</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(5,902,407</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(4,987,805</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Property and

  Equipment</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.02%;border:

  none;border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.06%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">6,030,776</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.02%;border:

  none;border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.06%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">6,318,412</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Other Assets</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Goodwill and other

  intangible assets</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">77,034</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">99,750</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Deferred tax asset</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">112,000</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">31,000</font></font></p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Other assets from

  discontinued operations</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">21,179</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.08%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">30,401</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Total Other Assets</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">210,213</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">161,151</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" bgcolor="#cceeff" style="width:59.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.98%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.08%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" bgcolor="#cceeff" style="width:1.94%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="59%" valign="top" style="width:59.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Total Assets</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;border:none;border-bottom:

  double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;border:none;border-bottom:

  double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">30,096,264</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.98%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.02%;border:none;border-bottom:

  double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.06%;border:none;border-bottom:

  double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">28,652,949</font></font></p>

  </td>

  <td width="1%" valign="bottom" style="width:1.94%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

</table>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">See accompanying notes to consolidated financial

statements</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-family:

'Times New Roman';"><br clear="all" style="page-break-before:always">

</font></font>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">NORTECH

SYSTEMS INCORPORATED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">CONSOLIDATED

BALANCE SHEETS</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

30, 2001 AND DECEMBER 30, 2000</font></font></b></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<table width="100%" style="width:100.0%;

 border-collapse:collapse;">

 <tr>

  <td width="58%" valign="bottom" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

  30</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">DECEMBER

  31</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="bottom" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">LIABILITIES

  AND SHAREHOLDERS' EQUITY</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">2001</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">2000</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="bottom" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">&#160;(UNAUDITED)</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">(AUDITED)</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Current

  Liabilities</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Current

  maturities of notes and capital lease payable</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.48%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">3,079,050</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.48%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">3,333,401</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accounts payable</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">5,444,884</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">5,743,836</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accrued payrolls

  and commissions</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,088,080</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,668,748</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accrued income

  taxes</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">127,330</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">182,330</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Other

  liabilities</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,143,029</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,200,296</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net current

  liabilities from discontinued operations</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">376,316</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">411,236</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:20.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Total Current

  Liabilities</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.48%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">12,258,689</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.48%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">12,539,847</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Long-Term Debt</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:30.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Notes and

  capital lease payable (net of current maturities)</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font>8,231,610</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font>&#160;

  7,665,536</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Shareholders'

  Equity</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:30.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Preferred Stock,

  $1 par value; 1,000,000 shares authorized; 250,000 shares issued and

  outstanding</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.48%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#160;250,000</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.48%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&#160;250,000</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:30.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Common Stock -

  $.01 par value; 9,000,000 shares authorized; 2,361,192 and 2,361,055 shares issued

  and outstanding at September 30, 2001 and December 31, 2000, respectively</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">23,612</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">23,611</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Additional

  paid-in capital</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">12,159,004</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">12,158,036</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accumulated

  deficit</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(2,826,651</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(3,984,081</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:20.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Total

  Shareholders' Equity</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.48%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">9,605,965</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.48%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">8,447,566</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.4%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.46%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.4%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.46%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Total

  Liabilities &amp; Shareholders' Equity</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;border:none;border-bottom:

  double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.48%;border:none;border-bottom:

  double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">30,096,264</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;border:none;border-bottom:

  double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.48%;border:none;border-bottom:

  double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">28,652,949</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

</table>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">See accompanying notes to consolidated financial

statements</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-family:

'Times New Roman';"><br clear="all" style="page-break-before:always">

</font></font>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">NORTECH

SYSTEMS INCORPORATED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">CONSOLIDATED

STATEMENTS OF INCOME</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">FOR

THE THREE MONTHS ENDED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

30, 2001 AND SEPTEMBER 30, 2000</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>



<table width="100%" style="width:100.0%;

 border-collapse:collapse;">

 <tr>

  <td width="55%" valign="bottom" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

  30</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

  30</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="bottom" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">&#160;2001</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">2000</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="bottom" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">&#160;(Unaudited)</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">(Unaudited)</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Sales</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">13,706,447</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">13,724,356</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Cost of Sales</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">11,380,106</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">11,011,441</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Gross Profit</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,326,341</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">2,712,915</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Selling, General

  and Administrative Expenses</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,471,102</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">1,586,008</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Interest Expense</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">158,931</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">314,448</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Miscellaneous

  (Income) Expense</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">118,059</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(4,067</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Income

  Before Income Tax</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">578,249</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">816,526</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Income Tax

  Expense</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">217,000</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">269,910</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Income</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">361,249</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">546,616</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Basic Income per

  Share of Common Stock</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">0.15</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">0.23</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Diluted Income

  per Share of Common Stock</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">0.15</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="18%" valign="bottom" bgcolor="#cceeff" style="width:18.22%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">0.22</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Weighted Average

  Common Shares:</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" style="width:55.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Basic</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;

  border-bottom:double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,361,192</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" style="width:19.14%;border:none;

  border-bottom:double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,361,056</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.12%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="55%" valign="top" bgcolor="#cceeff" style="width:55.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Diluted</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  border:none;border-bottom:double windowtext 1.5pt;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,450,438</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="19%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:19.14%;

  border:none;border-bottom:double windowtext 1.5pt;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,517,393</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.12%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

</table>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">See accompanying notes to consolidated financial statements</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-family:

'Times New Roman';"><br clear="all" style="page-break-before:always">

</font></font>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">NORTECH

SYSTEMS INCORPORATED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">CONSOLIDATED

STATEMENTS OF INCOME</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">FOR

THE NINE MONTHS ENDED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

30, 2001 AND SEPTEMBER 30, 2000</font></font></b></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<table width="100%" style="width:100.0%;

 border-collapse:collapse;">

 <tr>

  <td width="58%" valign="bottom" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER 30</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

  30</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="bottom" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">2001</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">2000</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="bottom" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">(Unaudited)</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">(Unaudited)</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Sales</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">41,173,806</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">39,492,921</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Cost of Sales</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">34,154,867</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">32,205,760</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Gross Profit</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">7,018,939</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">7,287,161</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Selling, General

  and Administrative Expenses</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">4,413,368</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">4,239,135</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Interest Expense</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">587,764</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">886,214</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Miscellaneous

  (Income) Expense</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">165,411</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(27,748</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Income

  Before Income Tax</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,852,396</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">2,189,560</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Income Tax

  Expense</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">695,000</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">784,715</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Income</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,157,396</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">1,404,845</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Basic Income per

  Share of Common Stock</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">0.49</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">0.59</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Diluted Income

  per Share of Common Stock</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">0.47</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.54%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">0.58</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Weighted Average

  Common Shares:</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.34%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">Basic</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;

  border-bottom:double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,361,158</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.46%;border:none;

  border-bottom:double windowtext 1.5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,355,106</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.24%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.34%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Diluted</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  border:none;border-bottom:double windowtext 1.5pt;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,470,907</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.46%;

  border:none;border-bottom:double windowtext 1.5pt;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">2,424,884</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.24%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

</table>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">See accompanying notes to consolidated financial statements</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-family:

'Times New Roman';"><br clear="all" style="page-break-before:always">

</font></font>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">NORTECH

SYSTEMS INCORPORATED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">CONSOLIDATED

STATEMENTS OF CASH FLOWS</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">FOR

THE NINE MONTHS ENDED</font></font></b></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

30, 2001 AND SEPTEMBER 30, 2000</font></font></b></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<table width="100%" style="width:100.0%;

 border-collapse:collapse;">

 <tr>

  <td width="58%" valign="bottom" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER 30</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SEPTEMBER

  30</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="bottom" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">2001</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">2000</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="bottom" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-align:center;text-indent:-10.0pt;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">(UNAUDITED)</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">(UNAUDITED)</font></font></b></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Cash Flows from

  Operating Activities</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net income from

  continuing operations</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.3%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,157,396</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.3%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">1,404,845</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Adjustments to

  reconcile net income from</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:15.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">continuing

  operations to net cash provided</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:15.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(used) by

  continuing operations</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:30.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Depreciation and

  amortization</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">937,318</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">789,172</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:30.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Deferred taxes</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(18,000</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">785,000</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:30.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Changes in

  Operating Assets and Liabilities:</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:45.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accounts

  receivable</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">210,388</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(2,027,748</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:45.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Inventories</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(2,026,187</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(1,973,047</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:45.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Prepaid expenses</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(306,953</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(64,134</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:45.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Other assets</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">-</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">19,958</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:45.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accounts payable</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(298,952</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">637,019</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:45.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accrued payrolls

  &amp; commissions</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">419,332</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">1,035,698</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:45.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accrued income

  taxes</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(55,000</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">-</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:45.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Other

  liabilities</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(57,267</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">350,127</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Cash Provided

  (Used) by Continuing Operations</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.3%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(37,925</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.3%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">956,890</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Cash Provided

  (Used) by Discontinued Operations</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(25,698</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">218,463</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Cash Provided

  (Used) by Operating Activities</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(63,623</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">1,175,353</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Cash Flows from

  Investing Activities:</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Acquisition of

  equipment</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(626,966</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;

  border-bottom:solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(669,397</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Cash Used by

  Investing Activities</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.3%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(626,966</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="0%" valign="bottom" style="width:.92%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" style="width:16.3%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(669,397</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Cash Flows from

  Financing Activities:</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Proceeds from notes

  payables</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">7,600,261</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">3,000,873</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Payments on notes and

  capital lease payable</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(7,288,503</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">(3,748,978</font></font></p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Issuance of common

  stock</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">968</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">3,493</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:5.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Cash Provided

  (Used) by Financing Activities</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">312,725</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(744,612</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Net Decrease in

  Cash and Cash Equivalents</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(377,864</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:solid windowtext .5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">(238,656</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">)</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Cash and Cash

  Equivalents - Beginning</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">527,998</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" bgcolor="#cceeff" style="width:17.22%;

  border:none;border-bottom:solid windowtext .5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">453,500</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" style="width:58.78%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

  <td width="17%" colspan="2" valign="bottom" style="width:17.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;">&nbsp;</p>

  </td>

  <td width="2%" valign="bottom" style="width:2.26%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">&nbsp;</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="58%" valign="top" bgcolor="#cceeff" style="width:58.78%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Cash and Cash

  Equivalents - Ending</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">150,135</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

  <td width="0%" valign="bottom" bgcolor="#cceeff" style="width:.92%;border:none;

  border-bottom:double windowtext 1.5pt;background:#CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">$</font></font></p>

  </td>

  <td width="16%" valign="bottom" bgcolor="#cceeff" style="width:16.3%;

  border:none;border-bottom:double windowtext 1.5pt;background:#CCEEFF;

  padding:0in .7pt .7pt .7pt">

  <p align="right" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:right;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;">214,844</font></font></p>

  </td>

  <td width="2%" valign="bottom" bgcolor="#cceeff" style="width:2.26%;background:

  #CCEEFF;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>

  </td>

 </tr>

</table>



<h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></h1>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:10.0pt;margin-right:0in;margin-top:0in;text-indent:-10.0pt;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">See accompanying notes to

consolidated financial statements</font></font></p>



<h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></h1>



<font size="3" face="Times New Roman"><font style="font-size:12.0pt;font-family:'Times New Roman';"><br clear="all" style="page-break-before:always">

</font></font>



<h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><a name="NotesToCondensedConsolidatedFinancia"><font size="3" face="Times New Roman"><font style="font-size:12.0pt">NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS</font></font></a></h1>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">NOTE 1.&#160; BASIS OF PRESENTATION</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">The accompanying unaudited condensed consolidated

financial statements have been prepared in accordance with accounting

principles generally accepted in the United States of America for interim

financial information and in accordance with the rules and regulations of the

Securities and Exchange Commission.&#160;

Accordingly, they do not include all of the financial information and

footnotes required by accounting principles generally accepted in the United

States of America for complete financial statements.&#160; In the opinion of management, all adjustments (consisting of

normal recurring adjustments) considered necessary for a fair presentation have

been included.</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">The operating results of the interim

periods presented are not necessarily indicative of the results expected for

the year ending December 31, 2001 or for any other interim period.&#160; The accompanying condensed consolidated

financial statements should be read in conjunction with the audited financial

statements and notes thereto for the year ended December 31, 2000 included in

the Company&#146;s Annual Report Form 10-K for the year ended December 31, 2000 as

filed with the Securities and Exchange Commission.</font></font></p>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">&nbsp;</font></font></p>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">NOTE 2.&#160; NEW ACCOUNTING PRONOUNCMENTS</font></font></p>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">&nbsp;</font></font></p>



<p style="font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">In July 2001, the Financial Accounting Standards Board

issued Statement of Financial Accounting Standards No.141 &#147;Business

Combinations&#148;, which is required for all business combinations initiated after

June 30, 2001. The standard eliminates the use of the pooling-of-interest method

and improves the accounting and reporting for business combinations. The

Company does not expect that the new standard will have a material effect on

the results of operations or cash flows.</font></font></p>



<p style="font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">In June 2001, the Financial

Accounting Standards Board issued Statement of Financial Accounting Standards

No.142 (SFAS 142) &quot;Goodwill and Other Intangible Assets&quot;.&#160; The statement addresses accounting and

reporting for (i) intangible assets at acquisition and (ii) for intangible

assets and goodwill subsequent to their acquisition. As it relates to the

Company's goodwill and intangible assets in existence at June 30, 2001, the

statement requires that management reassess the useful lives and amortization

period of such assets. For those with an indefinite useful life, periodic

amortization is to be discontinued and an annual impairment test, beginning

January 1, 2002, is to be established. The Company's Management does not feel

as if this pronouncement will have material impact on its statement of

financial condition or cash flows at the effective date and is currently

assessing the impact that the pronouncement may have on its results of

operations in fiscal 2002 and thereafter.</font></font></p>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">&nbsp;</font></font></p>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">In October 2001, the Financial

Accounting Standards Board issued Statement of Financial Accounting Standards

No. 144, &#147;Impairment or Disposal of Long-Lived Assets&#148; (SFAS 144), which is

applicable to financial statements issued for fiscal years beginning after

December 15, 2001.&#160; The provisions of

this statement provide a single accounting model for impairment of long-lived

assets.&#160; The Company is in the process

of determining the impact, if any, of adopting SFAS 144.</font></font></p>



<p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></b></p>



<p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><a name="Item2_ManagementsDiscussionAndAnal"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt">ITEM 2.

MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF

OPERATIONS.</font></font></b></a></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



<h3 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-decoration:underline;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt;

text-decoration:none;">(1.) </font></font><font size="2"><font style="font-size:10.0pt">Results of Operations for Quarter and Period Ended

September 30, 2001</font></font></h3>



<p style="font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">The Company had revenues of $13,706,447 compared to

revenues of $13,724,356 for the quarters ended September 30, 2001 and 2000,

respectively.&#160; The decrease in revenues

resulted primarily from order delays and postponements from several large

customers.&#160; The net income for the three

months ended September 30, 2001 was $361,249 or $.15 per share, compared to a

net income of $546,616 or $.23 per share, for the three months ended September

30, 2000.&#160; The unfavorable variance in

net income for the quarter ended September 30, 2001 compared to the prior year

quarter was the result of realizing lower margins on reduced revenue levels as

well as changes in the mix of products manufactured.</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="color:red;font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" color="black" face="Times New Roman"><font style="font-size:10.0pt;color:windowtext">The Company had revenues of

$41,173,806, compared to revenues of $39,492,921, for the nine-month periods

ended September 30, 2001 and 2000, respectively.&#160; The increased revenues result primarily from additional revenues

generated from internal customer sales growth.&#160;

The net income for the nine- month period ended September 30, 2001, was

$1,157,396 or $.49 per share, compared to net income of $1,404,845 or $.59 per

share for the same period in 2000. The year to date results reflects the effect

of the product mix change from high margin product to low margin product due to

the downturn in the economy.&#160; To offset

the effect in future quarters, the Company has taken aggressive cost-reduction

measures across the corporation, including consolidation of plant operations

and reassessment of personnel needs.</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">The Company's 90 day order backlog was $11,500,000 as of September 30,

2001, compared with $10,750,000 at the beginning of the quarter.&#160; Based on the current conditions, the Company

anticipates revenue levels in the fourth quarter of 2001 to be higher than

third quarter of 2001.</font></font></p>



<h6 style="font-size:12.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-decoration:underline;"><b><u><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></u></b></h6>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">(2.) <u>Liquidity and Capital Resources.</u></font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">The Company's working capital increased to $11,596,586 at the close of

third quarter 2001, compared to $9,633,539 as of December 31, 2000.&#160; The Company believes that its financial

stability will continue to improve during 2001 and would expect that its

operating cash flow and available credit faculties will be sufficient to fund

the expected growth in the near term.</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><u><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Forward-Looking Statements</font></font></u></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">Those statements in the foregoing report that are not historical facts

are forward-looking statements made pursuant to the safe-harbor provisions of

the Private Securities Litigation Reform Act of 1995.&#160; Such statements generally will be accompanied by words such as

&#147;anticipate,&#148; &#147;believe,&#148; &#147;estimate,&#148; &#147;expect,&#148; &#147;forecast,&#148; &#147;intend,&#148;

&#147;possible,&#148; &#147;potential,&#148; &#147;predict,&#148; &#147;project,&#148; or other similar words that

convey the uncertainty of future events or outcomes.&#160; Although Nortech Systems, Inc. believes these forward-looking

statements are reasonable, they are based upon a number of assumptions

concerning future conditions, any or all of which may ultimately prove to be

inaccurate.&#160; Forward-looking statements

involve a number of risks and uncertainties.&#160;

Important factors that could cause actual results to differ materially

from the forward-looking statements include, without limitation:</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-indent:-.25in;"><font size="3" face="Times New Roman"><font style="font-size:12.0pt">&#149;</font></font><font size="2"><font style="font-size:10.0pt">&#160;&#160;&#160;&#160;&#160; Volatility in the marketplace which may

affect market supply and demand the Company&#146;s products;</font></font></h1>



<h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-indent:-.25in;"><font size="3" face="Times New Roman"><font style="font-size:12.0pt">&#149;</font></font><font size="2"><font style="font-size:10.0pt">&#160;&#160;&#160;&#160;&#160; Increased competition;</font></font></h1>



<h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;page-break-after:avoid;text-indent:-.25in;"><font size="3" face="Times New Roman"><font style="font-size:12.0pt">&#149;</font></font><font size="2"><font style="font-size:10.0pt">&#160;&#160;&#160;&#160;&#160; Changes in the reliability and efficiency

of the Company&#146;s operating facilities or those of third parties;</font></font></h1>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font size="3" face="Times New Roman"><font style="font-size:12.0pt;">&#149;</font></font>&#160;&#160;&#160;&#160;&#160; Risks related

to availability of labor;</p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:.5in;margin-right:0in;margin-top:0in;text-indent:-.25in;"><font size="3" face="Times New Roman"><font style="font-size:12.0pt;">&#149;</font></font>&#160;&#160;&#160;&#160;&#160; General

economic, financial and business conditions that could the Company&#146;s financial

condition and results of operations.</p>



<h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></h1>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">The

factors identified above are believed to be important factors (but not

necessarily all of the important factors) that could cause actual results to

differ materially from those expressed in any forward-looking statement made by

the Company.&#160; Unpredictable or unknown

factors not discussed herein could also have material adverse effects on

forward-looking statements.&#160; All

forward-looking statements included in this Form 10-Q are expressly qualified

in their entirety by the forgoing cautionary statements.&#160; The Company undertakes no obligations to

update publicly any forward-looking statement (or its associated cautionary

language) whether as a result of new information or future events.</font></font></h1>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><a name="PartIiOtherInformation"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">PART II&#160; - OTHER INFORMATION</font></font></b></a></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><a name="Item6_ExhibitsAndReportsOnForm8"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Item 6.&#160; Exhibits and Reports on Form 8-K.</font></font></b></a></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">None</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">(The remainder of this page was intentionally left blank.)</font></font></p>



<font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-family:

'Times New Roman';"><br clear="all" style="page-break-before:always">

</font></font>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>



<p align="center" style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;text-align:center;"><a name="Signatures"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;font-weight:bold">SIGNATURES</font></font></b></a></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">Pursuant to the requirements of the Securities and Exchange Act of

1934, the registrant has duly caused this report to be signed on its behalf by

the undersigned, thereunto duly authorized.</font></font></p>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:

10.0pt">&nbsp;</font></font></p>



<table width="89%" style="width:89.72%;

 border-collapse:collapse;">

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Dated:&#160; November 6, 2001</font></font></h1>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</h1>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">NORTECH

  SYSTEMS INCORPORATED</font></font></h1>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</h1>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</h1>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</h1>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</h1>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</h1>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <h1 style="font-size:12.0pt;font-weight:normal;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</h1>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">By:</font></font></p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">/s/ Quentin E. Finkelson</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;

  font-weight:normal">Quentin E. Finkelson</font></font></b></p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">President and Chief</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Executive Officer</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">By:</font></font></p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;border:none;border-bottom:

  solid windowtext .5pt;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">/s/ Garry M. Anderly</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;border:none;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:12.0pt;font-weight:bold;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;page-break-after:avoid;"><b><font size="2" face="Times New Roman"><font style="font-size:10.0pt;

  font-weight:normal">Garry M. Anderly</font></font></b></p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Principal Financial</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Officer and Principal</font></font></p>

  </td>

 </tr>

 <tr>

  <td width="52%" valign="top" style="width:52.64%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="5%" valign="top" style="width:5.14%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;">&nbsp;</p>

  </td>

  <td width="42%" valign="top" style="width:42.22%;padding:0in .7pt .7pt .7pt">

  <p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">Accounting Officer</font></font></p>

  </td>

 </tr>

</table>



<p style="font-size:10.0pt;margin-bottom:.0001pt;margin-left:0in;margin-right:0in;margin-top:0in;"><font size="2" face="Times New Roman"><font style="font-size:10.0pt">&nbsp;</font></font></p>



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